The creator economy is hitting an inflection point in 2025: Will TikTok get banned, and will MrBeast continue his rise?

view original post

• The creator economy has blossomed into a $250 billion industry but faces fresh challenges.
• One big question on the horizon: Will TikTok be banned?
• Meanwhile, some smaller creators fear being pushed out — and some VC interest has cooled.

The creator economy is hitting an inflection point heading into 2025: TikTok is in the throes of a potential extinction event. MrBeast is testing the limits of influencer megastardom. And there’s an ongoing changing of the guard at YouTube — the platform that arguably started it all.

Birthed in the mid-2000s, the creator economy has grown into a $250 billion industry and could be worth as much as half a trillion dollars by 2027, Goldman Sachs estimates.

At the same time, growth has been constrained: Increased competition and platform algorithmic changes are making it harder for some smaller creators to thrive.

And while venture capital is still flowing — particularly in buzzy areas like artificial intelligence, social shopping, and influencer marketing — the investor hype cycle has also slowed.

Here are some of the biggest high points and low points the creator economy faced this year — and some challenges ahead in 2025:

TikTok faces an extinction event

A potential TikTok ban is one of the biggest threats looming over the creator economy. The app reliably churns out stars, resides at the heart of internet culture, and serves as an engine for countless e-commerce startups.

TikTok Shop helped social shopping finally break through in the US in 2024 — driving $100 million in sales on Black Friday alone and becoming more popular among US online shoppers than Shein and Sephora, according to a report by Coefficient Capital and The New Consumer.

TikTok may be saved by the Supreme Court or a more amenable Trump administration. But if a ban is enacted, up-and-coming creators are likely to be hit hardest.

Some are sounding the alarm, while others have told Business Insider they’re hopeful they can transition audiences to YouTube and Instagram — which staged something of a comeback in 2024, winning over more teens — or even LinkedIn.

TikTok has remained somewhat unfazed in the face of the legal battle — though CEO Shou Chew has reportedly made direct and indirect overtures to president-elect Donald Trump as the case heads to the Supreme Court.

New highs — and challenges — for MrBeast

Perhaps no modern-day creator has achieved heights like Jimmy “MrBeast” Donaldson, whose ambitious but challenging 2024 could serve as a blueprint — or cautionary tale — for fellow creators.

That said, YouTube’s most-subscribed star has a way of staying on top. Beloved for his generosity and what some see as his authenticity, Donaldson not only reaches untold masses but resonates with a coveted young male demographic.

In July, allegations emerged that Donaldson’s childhood friend and longtime video collaborator, Ava Tyson, had inappropriately messaged a minor. (Tyson wrote on X in July that any accusations of grooming were false, adding: “I would like to apologize for any of my past behavior or comments if it hurt or offended anyone.”) Tyson and Donaldson parted ways.

A third-party investigation ultimately concluded that any allegations of sexual contact between company employees and minors were “without basis.” It said there had been isolated incidents of “workplace harassment” and that the company had taken swift action to deal with those.

Meanwhile, Donaldson also garnered headlines this year for “Beast Games,” a streaming game show that premiered in December on Amazon Prime.

The show, which he said cost more than $100 million, amplified his already massive production scope and diversified his reach beyond his home turf.

The show has attracted some controversy, with some contestants complaining about filming conditions and injuries they say they sustained. Donaldson has previously said he couldn’t comment on certain allegations, but also described some of the claims as “disinformation.” Amazon hasn’t commented.

Related stories

A changing of the guard at YouTube

YouTube’s outright dominance — with a reported $400 billion valuation — sometimes has a tendency to fly under the radar. But the world’s largest video platform further cemented its status this year as the go-to revenue-sharer for creators.

Alphabet-owned YouTube has also emerged as an irrefutable powerhouse on TV screens — an all-important venue for advertisers — and in the influential podcast space. YouTube has long led Netflix in big screen watch time, and it’s also the most popular way for people to consume podcasts, per Edison Research.

Tragically, 2024 marked the death of creator economy architect Susan Wojcicki, the former YouTube CEO who shepherded key ventures like YouTube Premium and YouTube TV into the world. (Wojcicki had stepped down in early 2023.)

Despite countless wins, a long-running trend also continued of veteran creators retiring from their channels or floating the idea of quitting, with many citing age, burnout, and increased pressure amid platform changes.

Two formative creators officially left the platform in 2024: “Game Theorists” host Matthew Patrick and education creator Tom Scott.

And creators who rose to fame on YouTube also brought their bold-faced projects elsewhere this year — Donaldson’s aforementioned Amazon show, Jake Paul’s fight with Mike Tyson on Netflix, and a reality series by YouTube collective The Sidemen, which also transitioned to Netflix.